topic Illinois Subtractions for US govt obligations in State tax filing

Illinois Subtractions for US govt obligations

lgwalker59 — Fri, 27 Feb 2026 06:02:37 GMT

Illinois allows interest on US govt obligations to be subtracted from base income. I have cash fund that is invested in only us govt instruments from which I receive interest. Turbo Tax only transfers to my Illinois return interest specific to US Treasury Bonds which is an uneditable amount. How do I enter this additional interest amount on my Illinois return?

Re: Illinois Subtractions for US govt obligations

lgwalker59 — Fri, 27 Feb 2026 06:07:45 GMT

Sorry - This is in regards to Dividends not Interest

Re: Illinois Subtractions for US govt obligations

ThomasM125 — Fri, 27 Feb 2026 15:34:01 GMT

When you enter a Form 1099-DIV your US Treasury dividends will be included in box 1. After you enter it, you will be asked if any of the income is from US securities and if so, you are prompted to enter the amount. When you enter a Form 1099-INT, the US Treasury interest should be listed in box 3. You will also be asked to enter the amount that is form US securities.

When you go to the Illinois return, you should see a screen that says U.S. Treasury Bonds Interest Subtraction which should inform you that the treasury bond interest is not taxable in Illinois.